What: Galeria Karstadt Kaufhof, Germany's last major department store chain, is set to receive new ownership following its third bankruptcy in four years.

Why it is important: This transition marks a critical phase for the traditional retail sector in Germany, reflecting broader challenges such as rising operational costs and changing consumer behaviors. The acquisition by a consortium including U.S. private equity firm NRDC Equity Partners and German businessman Bernd Beetz could stabilize the company and save thousands of jobs by maintaining most of its current stores.

Galeria Karstadt Kaufhof, Germany’s sole remaining major department store chain, is poised for a takeover by a consortium led by NRDC Equity Partners and Bernd Beetz's BB Kapital SA, after declaring its third bankruptcy in recent years. The chain plans to retain over 70 of its 92 branches, aiming to preserve the majority of its 12,800 positions. This move comes after the company faced severe financial strains due to high energy costs, inflation, and reduced consumer spending, exacerbated by the COVID-19 pandemic. The finalization of this takeover is contingent on the approval of Galeria’s creditors and a court in Essen, with a creditors' meeting scheduled for May 28. The consortium's leaders express a long-term commitment to revitalizing and expanding the storied retail chain, indicating a hopeful future for the employees and the brand itself.

Germany's last department store chain is to get new owners after its latest insolvency